🍷 ADAPTING TO CHANGES: PORTFOLIO BALANCES & EXPECTATIONS
The biggest change this week is my portfolio’s transformative 50% baseline value increase, which grants me the luxury of patience. Dick’s Sporting Goods (DKS) is recovering from a crash, and Oracle Corp (ORCL) has an upcoming earnings call. I’ll wait for an optimal exit point before I execute trades out of those positions.
Gains and losses within 1% of a position’s average cost basis are no longer considered failed trades. For example, this week’s trade of Albemarle Corp (ALB) covers a salad and a paired glass of wine at Meritage — a great way to reframe a nominal gain as a win.
I hope these changes will deliver more consistent results and increased profits. I have a new (to me) winery to explore next week, and a second wine club membership isn’t cheap.
📈 THIS WEEK’S PERFORMANCE: WHEN A WINNING RECORD ISN’T QUITE WINNING
Please note: My core strategy guidelines, which now include clarification on how I measure success, have been moved to a permanent page. Please click here to review them.
- Trade record: 5-1-2. Nominal gains and losses are now considered ties, and from that perspective, this was a successful week. However, prior to Wednesday my executed trades were in unequal capital allotments — something that will be avoided going forward.
- Are we traveling with this week’s gains?: I can still book a trip, but limiting my premium wine shopping to one bottle wouldn’t be fun at all. I’d rather make it an overnight stay so I can bring home the usual four bottle haul.
- My portfolio’s growth: Nominal gain. This week’s gains were partially offset by Thursday’s dip that greatly affected my defensive dividend stocks. I’m also holding three positions over the weekend, so their unrealized gains and losses are included in today’s portfolio valuation.
🏦 THIS WEEK’S TRADING ACTIVITY
To maintain strict personal privacy, all individual share quantities and raw dollar values are omitted. Instead, allocations are tracked conceptually by entry targets and realized percentage gains.
PORTFOLIO PURCHASES (BUYS)
- SNDK (SanDisk) | I purchased Monday’s pre-market dip to my detriment. More on that later.
- BBY (Best Buy Co Inc), MO (Altria Group Inc), KVUE (Kenvue) & HRL (Hormel Foods Corp) | I expanded my positions to correlate with the portfolio’s baseline increase.
- HRL (Hormel Foods Corp) & BBY (Best Buy Co Inc) | I accumulated additional shares during Tuesday’s opening bell dip.
- ALB (Albemarle Corp) | I found an appealing entry point after Tuesday’s opening bell dip.
- O (Realty Income Corp) | It replaces Altria Group Inc (MO) within my dividend defensive position.
- ERIE (Erie Indemnity Co) | Tuesday’s dip got my attention, then I patiently awaited an optimal entry point after Wednesday’s opening bell.
- TER (Teradyne Inc) | I felt NVIDIA’s possible rising tide from its after hours earnings call would lift this boat for a quick gain the following morning.
- HRL (Hormel Foods Corp), BBY (Best Buy Co Inc), KVUE (Kenvue) & O (Realty Income Corp) | Thursday’s opening bell dip was an opportunity to pick up additional shares.
- DKS (Dick’s Sporting Goods) | This reinvestment has an immaterial wash-sale addition to its cost basis, and its September 11th Ex-Dividend date is a convenient reason to hold it for awhile.
- MU (Micron Technology Inc) | Thursday’s opening bell presented an appealing entry point.
- ORCL (Oracle Corp) | I found my desired entry point after Friday’s opening bell.
PORTFOLIO LIQUIDATIONS (SELLS)
- ULTA (Ulta Beauty Inc) | +4.2% gain | I sold half my position during Monday pre-market surge, then disposed the rest after the opening bell.
- MRVL (Marvell Technology Inc) | +4.2% gain | Took advantage of Tuesday’s opening bell surge to exit this position.
- DELL (Dell Technologies Inc) | +3.5% gain | I pocketed this gain to free up capital.
- SNDK (SanDisk) | -2.8% loss | As I hinted earlier, I fell for the sunrise trap. Keep reading for the deets.
- MO (Altria Group Inc) | +3.2% gain | I locked in a gain heading into Tuesday’s Power Hour.
- ALB (Albemarle Corp) | Nominal gain | I exited this position midday Wednesday in response to sideways action.
- TER (Teradyne Inc) | +2.8% gain | I pounced on Wednesday’s after hours surge and sold my full shares, then disposed of the partial share after Thursday’s opening bell.
- ERIE (Erie Indemnity Co) | Nominal gain | Similar to ALB (Albemarle Corp), I freed up capital in response to sideways action.
🚌 THE SCHOOL OF HARK KNOCKS: SANDISK’S SUNRISE TRAP
The first thirty to forty-five minutes after the opening bell is a hellstorm. Extended-hours orders are processed while investors trade in real time. Increased sales volumes can sometimes trigger a sell-off that applies pressure on both a stock and its investors — and it’s no fun when that pressure is on you.
I bought SanDisk’s (SNDK) Monday pre-market dip, then watched as the price plummeted until it established a floor roughly 7% below my cost basis. I missed an ideal entry point for a 5%+ intraday profit, and instead incurred a -2.8% loss Tuesday morning when my position felt more like a gamble than a disciplined, calculated decision.
My takeaway: Buying stocks outside of normal trading hours is now outside my risk appetite.
🚨DEFENSIVE DIVIDEND STOCKS: WHEN LONG-TERM HOLDS CRASH
Thursday’s trading session felt like someone cracked a Chardonnay bottle over my head after Best Buy Co Inc (BBY) and Hormel Foods Corp (HRL) reported their earnings. Best Buy beat Wall Street’s Earnings Per Share (EPS) and revenue estimates, yet dipped as low as 12.29% below Wednesday’s close before it began its recovery. Hormel beat EPS estimates but missed on revenue, resulting in a -10.25% single-day drop.
I was left holding the bag, yet I didn’t panic. My focus is to hold them, along with Kenvue (KVUE) and Realty Income Corp (O), long-term. A sale is a realized loss, so I made what I felt in the moment was the most logical move: I “bought the dip” to reload my positions and lower their cost basis.
While I can’t sell these positions for a profit anytime soon, holding more shares means I’ll receive higher quarterly dividends to reinvest in the interim. And assuming their prices gradually recover, so will my portfolio’s balance — despite minor concerns about concentration risk.
🎶 AFTER HOURS: EVERYBODY’S HOLDING FOR THE WEEKEND…
As Loverboy’s anthem with alternate lyrics loops in my head, I hold the following open positions as of Friday’s closing bell. Investments notated with an asterisk are part of my portfolio’s dividend defensive position:
- Kenvue (KVUE)*
- Hormel Foods Corp (HRL)*
- Best Buy Co Inc (BBY)*
- Realty Income Corp (O)*
- Dick’s Sporting Goods (DKS)
- Micron Technology Inc (MU)
- Oracle Corp (ORCL)
🍽️ IN CLOSING: MANAGING MY PORTFOLIO AND MY MOODS
Yesterday’s trading session tested my resolve. During a midday lull, I briefly questioned whether I had the intestinal fortitude for market volatility. I made all the right moves, but I knew the day would end with the rare “L”.
In that moment of doubt, I remembered my past life on the cube farm. I barely had time to breathe in between phone calls. I played “Whack-a-Mole” meeting impossible goals. Youthful supervisors were mostly clueless, and even younger co-workers were blessed with a koala’s work ethic. I treaded lightly on eggshells, mostly due to the company’s DEI push, so my interactions with a “work spouse” young enough to be my daughter were measured.
That contrast brought immediate emotional clarity: my worst day managing my portfolio is a hell of a lot better than my best day at the cube farm.
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